Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has renewed calls for key reforms to the global financial architecture, warning that high borrowing costs and rising debt service obligations are severely constraining the ability of developing countries to fund growth and deliver sustainable development.
Speaking yesterday the G-24 Meeting in Washington, D.C., Edun said the current financing environment is placing disproportionate pressure on low- and middle-income economies, limiting fiscal space at a time of heightened global uncertainty.
He urged multilateral institutions, including the International Monetary Fund and the World Bank, to move beyond incremental adjustments and provide stronger support mechanisms, particularly in the form of additional liquidity and enhanced risk management tools designed to lower the cost of capital.
“To do more, we would definitely like them to provide, particularly at this time, additional liquidity, risk management tools that bring down the cost of financing,” he said.
Edun warned that elevated interest rates and heavy debt servicing commitments are now consuming a significant share of public revenues in many developing economies, weakening their capacity to invest in infrastructure, social services, and long-term transformation.
